Markel axes jobs as it closes property cat reinsurance unit in strategic shift

Specialty insurer Markel Corporation is closing its Markel Global Reinsurance property catastrophe unit with its insurance-linked securities (ILS) manager Nephila becoming the single point of entry for serving the market. The move will result in job reductions globally.

The company wants to create one center of expertise for the global property catastrophe reinsurance market, while increasing Markel Global Reinsurance's focus on underwriting and growing its casualty and specialty lines under the continued leadership of Jed Rhoads, president and chief underwriting officer of the unit.

The change will result in approximately 25 job reductions globally, Markel said. While some employees in the Markel Global Re property team will have the opportunity to join the Nephila team, the rest of the impacted staff will depart the company on December 31, 2020.

Richie Whitt, co-CEO of Markel, said: "This move allows us to more fully leverage Nephila's market leading competitive position while also generating necessary operational efficiencies. We believe the companies that will win in the future will be those who most efficiently connect risk with capital, and this strategic shift will help us do that in the property CAT market."

"We are committed to working with and assisting employees affected by this change," he added.

Rhoads said: "The process to shift to our new model will begin immediately and we will ensure that it's completed in a professional, orderly, and seamless fashion. I want to express my deep thanks and appreciation to our property CAT clients, trading partners, and employees for their years of loyal support."